In this piece, we’ll take a look at the 5 Biggest Gaming Companies in the World. For more such companies, go to 20 Biggest Gaming Companies in the World.
5. NetEase, Inc. (NASDAQ:NTES)
2021 annual revenue: $13.74 billion
NetEase, Inc. (NASDAQ:NTES) is an internet technology organization that offers online content, commerce, communication, and community services. The company provides mobile and PC-client gaming, e-commerce, e-mail, advertising, live streaming video and music, and online payment services. NetEase, Inc. (NASDAQ:NTES) provides exceptional gaming experiences, inspires gamers, and offers value to its thriving community worldwide through industry-leading in-house R&D resources. NetEase, Inc. (NASDAQ:NTES) sales for 2021 were reported at $13.74 billion.
4. Nintendo Co., Ltd. (OTC:NTDOY)
2021 annual revenue: $15.88 billion
Nintendo Co., Ltd. (OTC:NTDOY), through its multiple subsidiaries, develops, manufactures, and sells entertainment products. Nintendo Co., Ltd. (OTC:NTDOY) has been heavily involved in the video game industry through the Super Nintendo Entertainment System, Game Boy, the Nintendo DS, the Wii, and the Switch. Its business is expanded across Europe, North America, South America, Asia, and other countries. The company’s sales for 2021 were reported at $15.88 billion.
Here is what Ariel International & Ariel Global Fund has to say about Nintendo Co., Ltd. in its Q3 2021 investor letter:
Japanese video game developer Nintendo Co., Ltd was the other detractor within Communication Services in the quarter. As the economy recovers from the stay, work and play from home environment, investors are concerned year-over-year sale comparisons for its hybrid console Nintendo Switch, portable Switch Lite and popular game Animal Crossing: New Horizons may prove more difficult. We believe the hardware offering, whose initial model was launched in 2017, will have a longer lifecycle than previous generations. The console continues to be sold-out across most distribution channels, validating our view that demand remains strong. Furthermore, it’s large install base and vertically integrated business model of selling proprietary software titles enable higher profits. There has also been an increasing shift away from third-party distributors towards online sales via digital downloads, further enhancing margin expansion. Looking ahead, Nintendo’s partnership with Tencent in China, as well as sales across mobile platforms, offers runways for additional growth.
3. Sony Corporation (NYSE:SNE)
2021 annual revenue: $84.59 billion
Sony Corporation (NYSE:SNE) is a multinational conglomerate headquartered in Tokyo, Japan. Sony Corporation is one of the biggest manufacturers of professional and consumer electronic products. The company operates through Sony Interactive Entertainment to develop video games and digital entertainment. Sony Interactive Entertainment has two sub-divisions: Sony Interactive Entertainment LLC, based in California, United States, and Sony Interactive Entertainment Inc., based in Tokyo, Japan. The company has sold more than 581 million PlayStation gaming consoles till June 2022. Sony Corporation (NYSE:SNE)’s topline for 2021 was reported at $84.59 billion.
Here is what ClearBridge Global Growth Strategy has to say about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:
Like the U.K., Japan is another outlier in a global regime of monetary tightening as its government has kept rates low and actively intervened in currency markets to slow the decline of the yen. We continued to increase exposure to Japan with the purchase of Sony (NYSE:SONY) in the consumer discretionary sector. Sony’s diverse lines of business span numerous industries, including video games, semiconductors, TV and music entertainment, and financial services. The majority of its $88 billion in revenue is generated from consolidated markets where it has a leading position. Finally, Sony has completed its transition from a low-quality business with similar margins and reduced visibility to an industry leader with elevated margins, a greater proportion of recurring revenues and more first-party content.
2. Tencent Holdings Limited (TCEHY)
2021 annual revenue: $86.61 billion
Tencent Holdings Limited (TCEHY) is a Chinese technology and entertainment conglomerate company. It is among the world’s highest-earning multimedia enterprises in terms of revenue. The company’s subdivision, Tencent Games, is focused on developing and publishing games. PUBG Mobile and Metal Slug: Awakening are some of the popular games which have been developed by the company. In 2021, Tencent Holdings Limited (TCEHY)’s revenue stood at $86.61 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
2021 annual revenue: $168.08 billion
Microsoft Corporation (NASDAQ:MSFT) is a multinational technology corporation based in Redmond, Washington, that manufactures computer software, consumer electronics, and personal computers. Xbox video game consoles are developed under Microsoft Corporation as its flagship product. Microsoft Corporation (NASDAQ:MSFT)’s Xbox Game Studios produces and publishes video games for Xbox gaming consoles, Windows computers, and Windows mobile. The company’s topline for the fiscal year 2021 stood at $168.08 billion.
Here is what Alger Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its third-quarter 2022 investor letter:
Microsoft Corporation (NASDAQ:MSFT) is a positive dynamic change beneficiary of corporate America’s transformative digitization. Microsoft CEO expects technology spending as a percent of gross domestic product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector.
Microsoft’s shares underperformed during the period because the company slightly missed analysts’ estimates. The miss was due to foreign currency headwinds, weakening small business and consumer demand, and decreasing advertising activity. However, Microsoft showed that despite consumer, advertising, and small and medium business weakness; the company’s main business, the digitization of corporate America, continues to grow. We believe the secular forces of cloud adoption (azure and office 365) remain resilient, and the company’s commercial bookings growth attest to the continued demand for digital transformation.
You can also take a look at Top 10 Richest Airlines in the World and Ken Fisher Super Stocks: 10 Biggest Small-Cap Stocks.
